Dollar disregards durable data

Forex 3 minutes to read
Michael O’Neill

FX Trader, Loonieviews.net

Summary:  The dollar couldn't hold its Durable Goods gains, but it remains the heavyweight among the FX majors.


Today's Durable Goods data didn’t get the job done. Traders looking for a fresh bout of lasting dollar strength were sadly disappointed even though March Durable Goods Orders rose 2.7%, well above forecasts for a 0.8% gain. The US Census Bureau said it was the fourth gain in five months. 

The US dollar inched higher in the immediate wake of the news but was unable to hang on the gains; as of 13:50 GMT, USD has lost ground against all the majors since the New York open. The 30,000 increase in the weekly jobless claims report tarnished the Durable Goods data and sparked a bout of profit-taking in FX.

As far as EURUSD goes, however, this morning’s post-data rally is merely a minor blip in the steep downtrend that began last week with the break below 1.1290. Soft Eurozone data and an uber-dovish European Central Bank stand in stark contrast to reasonably robust US data and a dovishly neutral Federal Reserve, keeping the focus on the downside.

USDCAD continues to ignore oil price swings and remains underpinned by the Bank of Canada’s latest dovish outlook.

Wall Street is trading on a mixed note. The DJIA and S&P 500 are down while the NASDAQ is slightly higher. Bill Gates' former company joined the trillion-dollar market cap club, albeit briefly. Microsoft (MSFT: Nasdaq) shares touched $131.37 after the company reported earnings of $1.14/share compared to expectations of $1.00. Prices have since dropped but are still up 3.90% from yesterday’s close.

The DJIA was weighed down by a 10.07% plunge in the shares of 3M (MMM: NYSE), where quarterly earnings were below forecasts. The company didn’t just cut its 2019 earnings forecast but also announced 2,000 employees would be laid off.
EURUSD (hourly, source: Saxo Bank)
EURUSD (hourly, source: Saxo Bank)

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Saxo Capital Markets (Australia) Limited
Suite 1, Level 14, 9 Castlereagh St
Sydney NSW 2000
Australia

Contact Saxo

Select region

Australia
Australia

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-au/about-us/awards

Saxo Capital Markets (Australia) Limited ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms, Financial Services Guide and Product Disclosure Statement to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as CFDs and Margin FX products may result in your losses surpassing your initial deposits. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States and Japan.
Please click here to view our full disclaimer.